13.8 – Original Credit Transaction Not Accepted

DESCRIPTION

Why did I receive a chargeback with reason code 13.8?

The cardholder did not accept the credit or local laws prohibit the issuer from allowing original credit transactions (OCTs).

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CLASSIFICATION

How does Visa classify this dispute?

Visa reason codes are divided into four categories: fraud, authorisation errors, processing errors, and consumer disputes.

Reason codes that start with 13 relate to cardholder disputes.

ISSUER TIME LIMIT

How long can the issuer wait to file a chargeback with reason code 13.8?

The maximum amount of time that can pass between the original credit transaction processing date and the dispute processing date is 120 calendar days.

VALIDITY

What would make a 13.8 chargeback invalid?

An issuer is not allowed to use reason code 13.8 if the transaction was a mobile push payment.

SUPPORTING DOCUMENTS

Can I fight a chargeback with reason code 13.8?

Yes. You can fight a chargeback with this reason code as long as you have one of the following:

• Evidence that you refunded the transaction before the chargeback was filed.
• Evidence that the chargeback is invalid. (Note: Your acquirer’s technology should catch these errors and automatically respond on your behalf. If your acquirer doesn’t automatically respond and you receive a chargeback notice, you can challenge the chargeback yourself.)

WORKFLOW

What process do I use to respond to a chargeback with reason code 13.8?

Visa reason code 13.8 is managed with the collaboration workflow.

You can respond to a 13.8 chargeback with either of the supporting documents outlined above and a rebuttal letter to explain your case.

ACQUIRER TIME LIMIT

How quickly do I need to file a chargeback response?

Your acquirer must submit your chargeback response within 30 calendar days of the chargeback filing date.

Of those 30 days, you — the merchant — will probably only be given 3 to 20 days to draft a response. The acquirer will use the remaining time to complete administrative tasks associated with managing the chargeback.

ADVANCING THE CASE

Can the issuer file pre-arbitration after a 13.8 dispute response?

Yes. An issuer can file pre-arbitration for any collaboration dispute — including disputes with reason code 13.8.

Pre-arbitration allows the issuer to address information or evidence provided in your dispute response.

After receiving a collaboration dispute response, the issuer can make a pre-arbitration attempt for any of the following reasons.

• The issuer can provide new documents or information about the original dispute.
• The issuer changes the reason code because of information or documents provided in the dispute response. (The issuer can only change the reason code if the original chargeback was valid.)
• If your dispute response included a claim that the cardholder no longer wants to dispute the transaction, the issuer must prove that the cardholder does, in fact, want to continue the dispute.
• If you provided the required supporting documents and disputed the cardholder’s claim, the issuer must review the evidence with the cardholder and provide an explanation of why the cardholder continues to dispute the transaction.
• If you refunded the cardholder after the chargeback was filed, but the issuer suffered a financial loss because of the exchange rate, the issuer can advance the case to pre-arbitration.

PREVENT

How can I avoid chargebacks like this in the future?

To prevent 13.8 chargebacks, make sure you understand your customers’ payment preferences. Use payment methods that are widely understood and adopted.

To learn more about preventing chargebacks, visit our detailed guide.